US equity futures exhibited caution on Tuesday morning as the Federal Reserve prepares to commence its policy-setting meeting focusing on interest rates. Futures for the Dow Jones Industrial Average declined by 0.4%, while S&P 500 futures slipped by 0.3%, and Nasdaq futures registered a 0.2% decrease.
The Federal Open Market Committee will initiate its two-day meeting today, with a policy statement expected to be released at 2 PM ET the following day. Economists are anticipating a 25-basis-point reduction in interest rates. In related news, oil prices also dipped, with North Sea Brent crude, the global benchmark, falling by 1.1% to $73.09 per barrel, and US West Texas Intermediate crude decreasing by 1.8% to $69.58 per barrel.
Retail sales data, set to be released at 8:30 AM ET, are projected to rise by 0.6% month over month in November, following a prior gain of 0.4%. Similarly, industrial production numbers are anticipated to show a 0.3% increase for November, which would counteract the previous month’s 0.3% decline.
Business inventories are also expected to see a slight increase of 0.2% in October, and forecasters are watching for the US housing market index to come in at 47 for December, an improvement over November's reading of 46..